July20,1999

Ninth District Congressman Adam Smith will join other members of the centrist New Democrat Coalition today to unveil a tax cut proposal that is touted as the reasonable, pro-growth, and pro-family alternative to the $864 trillion Republican tax cut package.

“If we enact the $864 trillion tax cut that the Republicans have proposed, we will be snatching defeat from the jaws of victory as far as balancing the budget and reducing our debt is concerned,” said Smith. “It’s probable that this $864 trillion tax cut will send our budget back into deficit; in fact, OMB estimates that we will have $47 billion deficit over ten years if we pass this tax cut. We have come so far towards a balanced budget and starting to reduce the debt, I would hate to see us take a major step backwards.”

Smith and others are instead advocating a more modest tax cut that provides benefits to families and supports policies to keep our economy strong. “The tax cut package that I and other New Democrats support will still allow us to maintain a balanced budget, reduce the debt, and ensure Medicare and Social Security are there for future generations,” Smith said.

The New Democrat tax cut proposal includes a provision authored by Smith to eliminate the estate tax for family-owned businesses.

“I strongly feel that we should eliminate the estate tax for family-owned businesses, because far too many family-owned businesses or farms are forced to liquidate or go out of business upon the owner’s death, instead of passing the business or farm on to the next generation,” Smith explained. “I am hopeful that this will be a top priority of Congress as we negotiate a final tax cut package.”